Under Armour Q3 2024 Earnings Report
Key Takeaways
Under Armour's third quarter revenue results were in line with expectations, with better-than-anticipated profitability. Revenue was down 6 percent to $1.5 billion. The company is working to reset Under Armour toward a path of improved revenue growth and enhanced value creation in the future.
Revenue decreased by 6 percent to $1.5 billion, or 7 percent on a currency-neutral basis.
Wholesale revenue decreased 13 percent to $712 million, while direct-to-consumer revenue increased 4 percent to $741 million.
North America revenue decreased 12 percent to $915 million, and international revenue increased 7 percent to $566 million.
Diluted earnings per share was $0.26. Adjusted diluted earnings per share was $0.19.
Under Armour
Under Armour
Under Armour Revenue by Segment
Under Armour Revenue by Geographic Location
Forward Guidance
Under Armour updated fiscal 2024 outlook. Revenue is expected to be down 3 to 4 percent. Gross margin is expected to be up 120 to 130 basis points. Operating income is expected to reach $287 million to $297 million. Diluted earnings per share is expected to be $0.57 to $0.59.
Positive Outlook
- Gross margin is expected to be up 120 to 130 basis points, an increase from the prior expectation of a 100 to 125 basis point increase.
- Selling, general & administrative expenses are unchanged from the previous expectation of flat to down slightly.
- Adjusted operating income is expected to be $310 million to $320 million.
- Capital expenditures are now expected to reach between $210 million and $230 million versus the previous expectation of $230 million and $250 million.
Challenges Ahead
- Revenue is expected to be down 3 to 4 percent, tightening the previous expectation of a 2 to 4 percent decline.
- Operating income is expected to reach $287 million to $297 million.
- Diluted earnings per share is expected to be $0.57 to $0.59, which includes $0.12 of after-tax benefit from the company's final earn-out in connection with the sale of the MyFitnessPal platform and $0.05 of negative impact from the company's litigation reserve.
- Adjusted diluted earnings per share to be $0.50 to $0.52.
Revenue & Expenses
Visualization of income flow from segment revenue to net income